WTI Crude Oil Price Falls as Strait of Hormuz Disruption Concerns Grow

The price of West Texas Intermediate (WTI) crude oil fell by about 3.4% to around $97.00, marking its first decline in five sessions.

This drop comes as Gulf foreign ministers are set to meet with their Iranian counterpart in the Omani city of Salalah on Monday, with the aim of securing backing for a temporary arrangement covering shipping through the Strait of Hormuz.

Despite the reported meeting, preliminary vessel tracking showed that seven ships passed through the strait on September 10, compared to eleven the day before. However, Gulf producers have been able to keep barrels moving by shuttling cargoes out to waiting tankers rather than sailing loaded ships through the strait.

The cost of this workaround is being factored into every cargo, with tanker earnings reaching record highs as a result. The price move on Friday was applied to freight, not to barrels that have already started moving again.